Imports > Exports =

(BoT refers to Balance of Trade, and BoP refers to Balance of Payments)

Unfavourable BoT

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Favourable BoT

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Unfavourable BoP

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Favourable BoP

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Solution

The correct option is A Unfavourable BoT
When a country’s value of imports is more than the value of its exports, it is said to have an unfavourable balance of trade because it means that the country spends more on imports than it earns through its exports. However, the balance of payments is a broader concept that covers both the flow of capital and the balance of trade.

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Similar questions

Q. BOP (Balance of Payment) refers to

Find the balance on the balance of payments account. Is the overall balance of payments balanced?

$\begin{matrix} Items & (Rs in lakhs) (i) Capital account balance & (-) 400 (ii) Value of imports & 150 (iii) Value of exports & 450 (iv) Unilateral transfers & 100 (v) Balance of visible trade & 200 \end{matrix}$

Q. Read the following statements - Assertion (A) and Reason(R), choose the correct answer the following:
Assertion (A): Balance of Trade (BOT) is the difference between the value of a country's exports and the value of a country's imports for a given period.

Reason (R): Balance of Payments records all transactions of capital nature.

[0.80 marks]

Q. A debit balance of payments occurs due to which of the following?
i) Low imports and high exports
ii) High imports and low exports

Q. Current account of Balance of Payments account records only exports and imports of goods and services.

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Imports > Exports = (BoT refers to Balance of Trade, and BoP refers to Balance of Payments)

Imports > Exports =

(BoT refers to Balance of Trade, and BoP refers to Balance of Payments)